Question: Explain, from a marketing perspective, why you would expect gross margin percentage, expenses-to-sales ratio, net profit margin, inventory turnover, and asset turnover to be different
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Gross margin percentage It is important because it shows how much profit is made by the retailer on merchandising sales without taking into consideration the expenses associated with operation of store It is also important for department store chain because their operating expenses are greater than a grocery store chain Net Profit margin is used because operating managers have not much control over the interest and tax expenses that do not reflect the operating managers performance Inventory turnover similar to gross margin is used in evaluating how the retailers effectively utilize the investment made in inventory and shows the cost of goods sold from income statement Higher inventory turnover is expected because of the retail ... View full answer
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